AT&T ponders a watered-down T-Mobile deal
Rethink possible. That is both AT&T’s marketing slogan and an apt summary of the challenges it faces now that its planned $39 billion purchase of T-Mobile USA looks increasingly doubtful. AT&T and T-Mobile’s corporate parent, Deutsche Telekom, acknowledged that the deal was in trouble in a Thanksgiving Day announcement. The companies said they had withdrawn, for now, their application to the Federal Communications Commission to join their cellphone operations. They also said that AT&T would take a $4 billion charge against earnings - the amount in breakup fees owed to Deutsche Telekom if the deal is scrapped.